Ethereum Classic (ETC) has long been a notable player in the cryptocurrency market. Recently, while its market structure appeared bullish, momentum and volume indicators have turned bearish on the charts. Following a retest of the $25-support level and almost switching its higher time frame market structure bearish, Ethereum Classic now faces short-term bearish pressures accentuated by the bad vibes coming from the U.S. May Jobs Report.

Ethereum Classic: $29 Support Fails, Latest Development

Source: Tradingview

On June 7th, Ethereum Classic's price touched $25.07, keeping the higher low of $25 since May 13th. This has illustrated more significant support on the higher time frame, albeit with extreme confusion in the direction of the market.

Bullish & Bearish Principles

Checking the Directional Movement Index (DMI), a signal of bearish trend change is obtained. The -DI (red line) is above the 20 level, and the ADX (yellow line) inches over the 20 level, indicating a potential downtrend. Further, the CMF stands at -0.09, upholding a negative net of income over the week and further emphasizing the bear sentiment with a high outflow of capital. Market optimism will only be restored if there is an about-turn from these indicators.

Output image

Here's a chart representing the Bullish & Bearish Principles based on key indicators:

Directional Movement Index (DMI)

  • The green dashed line represents the +DI (Bullish Indicator).

  • The red dashed line represents the -DI (Bearish Indicator).

Average Directional Index (ADX)

  • The orange line represents the ADX, indicating the strength of the trend.

  • The gray dotted line at level 20 marks the threshold for identifying a significant trend.

Chaikin Money Flow (CMF)

  • The blue line represents the CMF, indicating net money flow.

  • The black dotted line at level 0 marks the threshold for positive vs. negative net money flow.

Futures Market Reflects Strong Bearish Sentiment

The Ethereum Classic price has increased from $31 to $28.7 over the last 10 days in a constant manner. But one day, it plunged 32%, in a single 4-hour trading period, from $0.92 to $0.63, on high flow selling pressure from Bitcoin. The price bounced from $25 to $27, but the tremendous volatility remains.


Spot CVD (on chain) started to strongly decrease on a constant basis, with an onslaught of attacking a critical support level. Open Interest began to fall in the same attack mode downwards, with domestic volume indicators embracing and showing such a decline, giving loud sentiment signals of strong bearishness. All these are very discouraging for a stronger price action towards long positions.

Way Forward for Ethereum Classic

For Ethereum Classic to build an uptrend perspective on higher timeframes, serious effort must pass to go through an uptrend on the lower timeframes. This will include overcoming the current bearish pressures, as well as really building in a much more solid support. More than ever, traders and investors will have to keep a closer eye on market indicators and external economic reports to guide them through this volatile landscape.


Ethereum Classic is set up in a mixture of bullish structure, which is, however, undermined by bearish momentum and volume indications. There is a short-term indication of bearish pressure in the market, fueled mostly by external economic factors, such as the May Jobs Report in the U.S. The change in market sentiment and a strategic reorientation towards regaining uptrends on the lower timeframes could then open the way for renewed bullish perspectives. Key signs will be important to take note of by investors.